Gold Prices Decline Amid Easing Trade Tensions
Investor interest in gold wanes as U.S. trade negotiations improve.
Gold prices decreased today as the appeal of the metal as a safe haven diminished due to easing trade tensions between the United States and its trading partners.
Investors are now anticipating U.S. economic data to assess the trajectory of Federal Reserve policy.
As of 02:11 GMT, spot gold fell by 0.4% to $3,329.12 per ounce.
Meanwhile, U.S. gold futures declined by 0.2%, reaching $3,342.40.
Market analyst Yeap Jun Rong noted a notable improvement in the risk environment, with market participants expressing optimism that the worst of trade tensions may be over due to encouraging discussions regarding trade agreements.
U.S. Treasury Secretary Scott Pessen stated that a significant number of key U.S. trading partners have made ‘very good’ proposals to avoid U.S. tariffs, with India likely to be among the first countries to sign such an agreement.
Additionally, Pessen remarked that recent Chinese moves to exempt certain U.S. goods from retaliatory tariffs illustrate Beijing's desire to ease trade tensions with the U.S. He also mentioned that Washington has refrained from escalating the situation through the prohibition of those goods.
The Trump administration is also set to act later today to mitigate the impact of tariffs on cars by relaxing some tariffs on imported auto parts for domestically manufactured vehicles.
Despite these developments, the risks of the global economy slipping into recession this year remain high, as indicated by experts in a Reuters poll, many of whom stated that tariffs imposed by the U.S. President have adversely affected business sentiment.
Gold, traditionally a safe-haven asset during political and financial instability, recently reached an all-time high of $3,500.05 per ounce last week and has gained over 25% since the start of the year.
Investors are closely monitoring a series of economic data releases this week, including the U.S. jobs report scheduled for later today, the Personal Consumption Expenditures (PCE) report due tomorrow, and the non-farm payrolls report set to be released on Friday.
These reports will help assess the impact of the latest tariffs imposed by Trump on the expectations for Federal Reserve policy.
Regarding other precious metals, silver increased by 0.1% in spot trading to $33.21 per ounce, platinum remained stable at $986, while palladium fell by 0.1% to $948.06.
Investors are now anticipating U.S. economic data to assess the trajectory of Federal Reserve policy.
As of 02:11 GMT, spot gold fell by 0.4% to $3,329.12 per ounce.
Meanwhile, U.S. gold futures declined by 0.2%, reaching $3,342.40.
Market analyst Yeap Jun Rong noted a notable improvement in the risk environment, with market participants expressing optimism that the worst of trade tensions may be over due to encouraging discussions regarding trade agreements.
U.S. Treasury Secretary Scott Pessen stated that a significant number of key U.S. trading partners have made ‘very good’ proposals to avoid U.S. tariffs, with India likely to be among the first countries to sign such an agreement.
Additionally, Pessen remarked that recent Chinese moves to exempt certain U.S. goods from retaliatory tariffs illustrate Beijing's desire to ease trade tensions with the U.S. He also mentioned that Washington has refrained from escalating the situation through the prohibition of those goods.
The Trump administration is also set to act later today to mitigate the impact of tariffs on cars by relaxing some tariffs on imported auto parts for domestically manufactured vehicles.
Despite these developments, the risks of the global economy slipping into recession this year remain high, as indicated by experts in a Reuters poll, many of whom stated that tariffs imposed by the U.S. President have adversely affected business sentiment.
Gold, traditionally a safe-haven asset during political and financial instability, recently reached an all-time high of $3,500.05 per ounce last week and has gained over 25% since the start of the year.
Investors are closely monitoring a series of economic data releases this week, including the U.S. jobs report scheduled for later today, the Personal Consumption Expenditures (PCE) report due tomorrow, and the non-farm payrolls report set to be released on Friday.
These reports will help assess the impact of the latest tariffs imposed by Trump on the expectations for Federal Reserve policy.
Regarding other precious metals, silver increased by 0.1% in spot trading to $33.21 per ounce, platinum remained stable at $986, while palladium fell by 0.1% to $948.06.
